Japan escalated its campaign to convince investors that the nation’s post-earthquake challenges mean they shouldn’t pile into the yen as a haven from the turmoil over U.S. and European debt.
The pound may fall against Norway’s krone after the Bank of England yesterday signaled that it’s moving closer to asset purchases while Norges Bank said rates should be raised gradually, UBS AG said.
Not since 1999 have currency traders been bullish on the dollar for so long, a sign that the market sees the U.S. resuming its role as the engine of global economic growth.
UBS AG ended a trade recommendation to sell the pound against the dollar after the U.K. currency rose, surpassing the bank’s upper limit to protect against greater losses.
Australia’s currency fell for a fifth day against the U.S. dollar in the longest losing streak in almost a year after data showed an unexpected decline in retail sales in June.
UBS AG, Switzerland’s biggest bank, increased its forecasts for the franc against the euro as the Swiss currency’s world-beating gains in the past six months confound those expecting it to weaken.
The yen rose to almost its strongest level in more than three months as Treasury yields declined on reduced risk appetite, damping demand for U.S. assets.
Japanese Finance Minister Yoshihiko Noda said that today’s appreciation in the yen is different from the advance on March 18, when gains prompted the Group of Seven to mount joint sales of the currency.
"Our 115 yen-per-dollar three-month target is certainly in sight."
- Gareth Berry on Oct 31, 2014